from the book "NO EXCUSE! in business"
Finally we were on track and John started to understand that price does not really matter if you are able to educate your target group. He was clearly aware that until this point he went into a price fight just because he missed this key factor. John realized that he followed the wrong type of marketing approach.
The real marketing approach is a process, which builds up a value for a product. This converts a potentially valuable product into a really valuable one. We both knew that if a client really wants something then price does not really matter anymore. However I continued our little conversation because I wanted to clarify this in John.
- People accept the price for sure. Because price is easy, everybody knows that 149 is less than 219.
- Yes. This is how they purchase things.
- If you allow them to compare your product based simply on price, then you can start to dig the grave for your company. - I said to John, who looked really sad.
- Yes, but... - and he did not finish his sentence, so I broke the silence.
- Look, remember why you bought your car? Was it the cheapest? And your suit?
And at this point I started to see again that sparkle in John’s eyes. His mind came back to our reality and he started to remember all that we talked about a few minutes ago. Human brain usually focuses on the negative effects so we always need to remind our brain of the positive things and thoughts as well.
- If you are a smart leader then you can educate your target group. Everybody can see the price, but we have to show them our values as well. Look...
I tried to find some more space on our tea-cloth and I started to draw for John again. I drew him two trees. Both trees had the similar size of crown, but their trunks were different in size. And because of the difference of the trunk they had different types of roots as well. I also drew our little figure standing between the two trees.

- In a calm economic situation and without being educated this is how clients see the companies. - I started.
- As a tree? - joked John.
- Yes, as a tree. A tree where everybody is looking at the tree crown, which is the biggest visible surface. Let’s say it is the packaging of the tree, therefore all marketing experts are aiming to present it in the most delicate and fancy way.
- Got it. This is what makes the difference.
- If you are in the price fight, then yes. - I agreed with John. - When a prospective client sees two similar companies with two similar price tags then he will decide based on the “packaging”. This is where the marketing usually focuses on.
- The amateur marketing? - John asked back curiously.
- Let’s say the marketing which focuses on the brand message instead of the intense growth of new clients.
- Yes, but making beautiful advertisements and presenting them everywhere is a good result.
- Specially if you can measure it.
- I can.
- How? - I asked back immediately.
- Number of appearances per countries.
- A question my friend: Can you really measure how many new clients are actually coming because of the magazine appearances?
- Not really.
- So are you measuring your marketing activity based on weight?
- What? - asked John with some confusion in his voice.
- Yes, based on kilogram. Because when you spend 1 million for media appearances and you receive 100 magazines but not measurable results, then you are paying for the weight of the media appearances instead of the number of the new clients.
- But...
- Look, the situation is that unmeasurable marketing tools are always a waste of money.
- Media appearance is a waste of money?
- No. Media appearance is good if you can measure their results. Measuring is critical because it gives you back feed-back and feed-backs help your business to react in a proper way to the market needs. Marketing is all about achieving reaction in order to attract the attention of your prospective clients.
- This is true. - acknowledged it John.
I started to draw again, because I did not want to go deeply into this media advertisement issue, I could talk about its benefits or its negative effects for hours. Instead of this I changed the focus of our little figure from the tree crown to the roots of the tree.

- The values are usually hidden, just as you can not see the roots of the trees. As I mentioned to you before in difficult economic situations people are looking for stability.
- Yes, targeting the competitors’ clients who feel unstable. Got it. - John winked.
- Yes. - I smiled back to John. - Because when people are looking for stability their focuses are changing. They are not looking anymore at the fancy tree-bush, not even at the tree trunk, but at the roots. Prospective clients will try to make their decision based on the roots of the tree.
- But it is hidden.
- Yes, if you are not presenting it to them.
- Under the ground?
- Is your company under the ground? - I asked back.
- No, hell no - shouted John. - We are alive!
- Then please see the tree as a symbolic drawing.
- Okay-okay. - smiled John.
- So, if you are able to present the roots, then you are able to educate your prospective clients to the added values and to the extra stability that they can reach. But at this point you have to understand one thing.
- What?
- That marketing is not about the product or the service itself.
- I am starting to be confused.
- Marketing is all about people. The thing is that in an economic climate where the supplies are much higher than the demand is, advertisement is only good for the magazines but not for the businesses itself. Marketing is all about people. - I repeated it to John.
I pointed again to the drawing, which I made a few minutes ago and I showed the focus of the figure to John.
- As you can see the roots are what really count because people are looking for values, which gives them security and stability. This is how you can make a bold difference in your market and this is how you can control it without being effected by any kind of negative economic situation. However do not forget that the market is always changing, therefore you continuously need to follow and challenge it.
- Got it.
- Then here is more. - I continued. - Every leader knows that if your company is not able to generate profit then it will not survive for a long time. But fewer leader understands that if you can not create value for your clients then you have no future.
After this sentence John became very quiet. It looked like that he is focusing only on his meal but I knew that his cogwheels are ticking deep inside his head. I also knew that I need to give him some time again to digest all he heard. These were a lot of information for him and most of them from a different point of view which he was used to. So I started to enjoy my meal as well and I was ready to answer his upcoming questions. I was sure there will be some soon, but we had time to wait because we have not finished our dinner yet, not to mention our cigar time at the end. It was our routine to enjoy them after our dinner.
Paperback: 229 pages
Publisher: Lulu
ISBN: 978-1-300-52746-6
Language: English
Get one NOW: http://amzn.com/1300527463
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